The industry that is largely concentrated in the rural areas of KwaZulu-Natal and southern Mpumalanga has experienced a decline in annual sugar production by nearly 25% in the past 15 year.
According to SASA, the Health Promotions Levy dealt a significant blow to the industry particularly because the beverage sector is its largest customer. Association’s Nutrition Manager, Priya Seetal says, “Obviously, we predicted this. This will have a big impact on the sugar industry because at the time and probably still is the case, our biggest customer is the beverage industry and without any mitigating measures, for example enabling product diversification. The industry was going to be heavily impacted by this sugar tax.”
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